Hard to keep secrets

Hard to keep secrets

Diabetes may be a very large business but in many ways, it’s a very small community. With the majority of this small community all in the same place at the same time it’s not easy keeping a secret. Yes, the wacky world at our annual wacky dance are like kids in high school swapping tidbits of information. So, let’s get to the worst kept secrets things no one is supposed to know but everyone seems to know. And what better place to start than our good friends at Johnson and Johnson (NYSE: JNJ).

Tomorrow is supposed to be a big day for JNJ as they will release data from the Invokana cardiovascular study, only problem is based on what we’ve been told they probably wished they weren’t. Several respected researchers who have seen the data, so much for secrets, have given it the thumbs down. Based on everything we have heard the EMPA-REG data for Jardiance from Lilly (NYSE: LLY) remains the gold standard and that will only be reinforced tomorrow.

Another secret which isn’t a secret is the company is also having a very difficult time divesting their diabetes device franchise. Now the company would like to sell the entire franchise but is willing to break it up and sell the individual pieces. Yet even breaking it up doesn’t help much when the company over values the individual pieces. Again, based on what we are hearing the problem isn’t a lack of interested buyers the problem seems to be JNJ’s valuation and asking price.

Given the sliver of space this franchise was given in the large JNJ booth, and by the way the Animas pump in the water has got to go, it’s obvious JNJ wants out. Yet you can’t get out when you keep shooting yourself in the foot.

Another secret which isn’t a secret is that Tandem (NASDAQ: TNDM) is running out of money. What’s sad here is that company officials insist everything is just fine, telling anyone who will listen that their value is not reflected in their stock price. But what’s more interesting is the handicapping that’s going on as to when they call it quits. Some say they will make it to the end of the year while others believe the end will come as early as September, our bet is November 4th for no other reason than it’s a very important day in the Kliff family.

Well that’s all this morning enjoy your coffee or better still your mimosa.